Item 7 - Polybutylene Water Line Replacement Contract — original pdf

Backup

..Body Item 7 Water & Wastewater Commission: March 12, 2025 Council: March 27, 2025 Posting Language ..Title Recommend approval to authorize additional expenditures for the construction contract for the Polybutylene Water Services Replacement Program project with Austin Underground Inc., to increase the amount by $864,030 for a revised total contract amount not to exceed $10,434,354. Funding: $10,434,354 is available in the Capital Budget of Austin Water. Lead Department Financial Services Department. Managing Department Capital Delivery Services. Purchasing Language: Additional Authorization. MBE / WBE: Note: This request is for additional expenditure authority only. MBE/WBE goals will be established if a change order is requested. Prior Council Action: December 9, 2021 – Council approved a contract with Austin Underground, Inc. for the Polybutylene Water Services Replacement Program project. Council Committee, Boards and Commission Action: March 12, 2025 – To be reviewed by the Water and Wastewater Commission. Additional Backup Information: Austin Water’s distribution system is large and complex, consisting of approximately 3,900 miles of water mains and serving approximately one million customers. Distribution system assets require ongoing repair and replacement to prevent leaks and loss of valuable treated water because of deterioration due to environmental conditions and aging. Water service lines made of polybutylene or polyethylene fail at a much higher rate compared to other materials such as copper or high-density polyethylene . Failure rates for polybutylene or polyethylene pipes increase at higher pressures. The cost of proactively replacing a service as part of a construction contract is about 30% less than the cost to reactively repair or replace using Austin Water’s Distribution System Maintenance crews. Proactive service line replacement also results in less water loss and fewer unscheduled customer service outages. Since 2001, Austin Water has been proactively replacing polybutylene and polyethylene services in areas of high static pressure using both internal forces and contractor resources. Under the Polybutylene Water Services Replacement Program project, approximately 2,200 polybutylene and polyethylene water services with pressures exceeding 105 pounds per square inch are being replaced with copper services in 62 subdivisions. Many of these services have previously experienced one or more breaks with subsequent repair by Distribution System Maintenance crews. Construction is currently ongoing and is projected to be completed in Spring 2025.  Item 7 Water & Wastewater Commission: March 12, 2025 Council: March 27, 2025 Due to significant field-verified deviations with existing utilities, unexpected conditions encountered during construction; and the need to repave roads with higher quality asphalt; the project’s contingency funds have been depleted. It is anticipated that the current approved not to exceed amount will be insufficient for the project. This project is located within zip codes 78617, 78704, 78730, 78731, 78736, 78737, 78741, 78745, 78746, 78748, 78749, 78750, 78754 and 78759. (Districts 3, 5, 6, 8 and 10).  Item 7 Water & Wastewater Commission: March 12, 2025 Council: March 27, 2025 AUTHORIZATION HISTORY - Polybutylene Water Services Replacement Program AMOUNT DATE DESCRIPTION $8,640,295.00 $864,029.50 $66,000.00 $864,029.50 $10,434,354 Total Contract Authorization 12/09/2021 12/09/2021 12/09/2021 03/27/2025 Proposed (Council) – Additional Contingency (Council) – Original Construction Contract Awarded (Council) – 10% Contingency (Administrative Authority) – Administrative Authority CONTRACT HISTORY AMOUNT DATE DESCRIPTION (CO%/CUMULATIVE CO%) $8,640,295.00 $87,995.00 $42,000.00 $288,390.00 $47,000.00 $(400,115.00) $298,101.00 $311,028.88 $864,029.50 12/17/2021 Original Construction Contract 07/06/2023 CO 1 – Bid Item Quantities Adjustment (1.02%/1.02%) 07/28/2023 CO 2 – Bid Item Quantities Adjustment (0.49%/1.51%) 08/25/2023 CO 3– Bid Item Quantities Adjustment (3.34%/4.85%) 11/07/2023 CO 4 – Bid Item Quantities Adjustment (0.54%/5.39%) 02/27/2024 CO 5 – Bid Item Quantities Adjustment (-4.63%/0.76%) 07/25/2024 CO 6 – Additional Subdivision work and repaving (3.45%/4.21%) 11/26/2024 CO 7 – Bid Item Quantities Adjustment (3.60%/7.81%) Proposed Council – Additional Contingency (10%/20%) $10,178,724.40 Total Contract History